The Financial Reporting Council of Nigeria (FRC) has issued new reporting guidelines to enable firms to respond to prudential considerations in various sectors.
In a report on engagement with sectoral regulators, the FRC explained that it has been engaging with regulators on developing sectoral guidelines of corporate governance on specific requirements relevant to each sector, which are not covered under the Nigerian Code of Corporate Governance 2018 (NCCG 2018).
It stated: “We refer to Paragraph D of the Introduction Section of Nigerian Code of Corporate Governance 2018 (NCCG 2018 or the Code) on Monitoring the Implementation of NCCG 2018, which provides that “The implementation of this Code will be monitored by the FRC through the sectoral regulators and registered exchanges who are empowered to impose appropriate sanctions based on the specific deviation noted and the company in question.”
Continuing, it said the process is, ultimately, important because sectoral codes of corporate governance are to be withdrawn, and Sectoral Guidelines of Corporate Governance will be issued to address specific matters or requirements on corporate governance.
To this end, NCCG 2018, as the National Code, would be the only Code of Corporate Governance in Nigeria.
“At the current time, the Council’s expectation is that the Sectoral Guidelines would be released once the engagement with Sectoral Regulators is completed. Additional information in this regard will be provided subsequently,” it said.
On the reporting template, it referred to Paragraph 1(2) of the Regulation on the Adoption and Compliance with the Code, and issued pursuant to Section 73 of the Financial Reporting Council of Nigeria Act of 2011, which provides that public companies (whether a listed company or not.